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city, southern Chile. Punta Arenas lies on the Strait of Magellan between the Pacific and Atlantic oceans and is the southernmost large city in the world. Founded in 1849 by Colonel Jose de los Santos Mardones, it flourished as a port of call and coaling station until the opening of the Panama Canal (1914) and the replacement of coal (still mined nearby) by fuel oil as a maritime fuel. Now the service centre of a large sheep-raising area, it processes and exports hides, wool, and frozen mutton. Its port facilities also handle local lumber and petroleum products. The nearby Tierra del Fuego oil fields, the attractions of the free port, and the maintenance of naval, air, and army garrisons have all contributed to the city's modern growth. Surface communication and an international airport connect it with the north and Tierra del Fuego. Pop. (2002) 116,005.